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Mike Popielec has been the CEO of Ultralife Corporation (NASDAQ:ULBI) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Popielec’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ultralife Corporation is worth US$131m, and total annual CEO compensation is US$956k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$513k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$473k.
As you can see, Mike Popielec is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ultralife Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Ultralife has changed over time.
Is Ultralife Corporation Growing?
Ultralife Corporation has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). Its revenue is down -4.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
Has Ultralife Corporation Been A Good Investment?
Boasting a total shareholder return of 71% over three years, Ultralife Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Ultralife Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ultralife.
Important note: Ultralife may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.